CBA customers lose homes amid huge fraud claim

Jane Lee, Cameron Houston, Chris Vedelago

A professional poker player is facing 142 charges over an alleged $100 million fraud that saw the Commonwealth Bank foreclose on the homes of victims despite the bank being alerted to the alleged scam.

The case is set to raise serious questions about the involvement of bank staff in the alleged fraud and the CBA's decision to ignore allegations of misconduct for more than four years.

Bill Jordanou, 55, is one of five men who will be charged over the decade-long rort, with the champion poker player and ''financial adviser'' facing Melbourne Magistrates Court on Wednesday.

Mr Jordanou has been charged with 142 counts of obtaining a financial advantage by deception, obtaining property by deception, stealing a Mercedes Benz, and conspiracy to pervert the course of justice.

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The court was told his alleged co-conspirators, Robert Zaia, Scott Arthur, and Wayne Collins would be charged shortly over the scheme said to have been orchestrated out of the offices of accounting firm Zaia Arthur & Associates. Another associate, Frank Porcino, has already been charged.

Fairfax Media revealed last year that Mr Jordanou and his business partner, accountant Robert Zaia, had allegedly siphoned tens of millions of dollars from client accounts as part of a scheme involving fraudulent loans and fake investments in property development projects.

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The pilfered money allegedly funded a lavish lifestyle that included gambling trips to Macau and Las Vegas, jewellery, luxury cars, two boats, a jet-ski, Harley-Davidson motorbikes and several hot-rods.

The court was told Victoria Police began investigating the firm after the CBA notified the fraud and extortion squad in late 2011 that a number of loan applications had been lodged on behalf of clients which were supported by false documents.

But a Fairfax Media investigation has revealed that the CBA was aware of serious fraud allegations involving one of its senior lending officers as early as 2007. The man, who often worked out of offices of Zaia Arthur & Associates as a mobile lender, allegedly approved numerous suspect loans in exchange for a share of profit from the deals.

Despite repeated warnings about forged loan documents and allegations of deception, the CBA has repeatedly foreclosed on the homes of victims caught up in the alleged scam. The repossessions continued even after the bank notified Victoria Police about its own concerns.

George Defteros, for Mr Jordanou, said his client had been waiting 2½ years to be charged. ''We welcome these charges because Mr Jordanou wants to get on with his life.''

Mr Jordanou was released on bail but must adhere to conditions that include not ''stalking'' witnesses. One witness has an intervention order out against him, the court heard. Mr Jordanou and his associates allegedly tried to influence a witness not to talk to police detectives, telling him they would ''look after him''.

Police said the fraud targeted more than a dozen other lenders, including ANZ and Westpac.

The CBA has previously said it conducted an internal investigation and was working with police.

Mr Defteros has filed a defamation lawsuit against Fairfax Media on behalf of Mr Jordanou and Mr Zaia.